PRESS RELEASE
30th October 1997

Plan to achieve uniform specifications for digital television distribution in the Nordic countries

Introduction

The following document has been prepared pursuant to the MOU and a meeting of the Nordic public service broadcasters and Nordic 'national telecom companies', which, according to a summary of the minutes dated 28th August 1997, asked a group of representatives of the participating organizations to draft a plan which, taking its starting point in current activities, would result in the establishment of common specifications for digital television in the Nordic countries or, alternatively, mutually compatible national solutions.
The pages that follow present an outline of the working group's proposal.

Members of the working group:

• Jan-Olof Gurinder, SVT
• Johan Thorud, NRK
• Tove Rodahl, NRK
• Anders Kronborg, DR
• Olle Mossberg, TV4
• John-Inge Bratteveit, TV 2 N
• Per Schrader-Nielsen, TV 2 N
• Per Parbo, TV 2 D
• Ismo Silvo, YLE
• Andero Hoffman, MTV3
• Eyjólfur Waldemarsson, RUV
• Per Mellberg, Teracom
• Hans Brattberg, Telia
• Hasse Iwarsson, Telenor
• Per Bendix, Tele Danmark
• Finn Søndergaard Pedersen, Tele Danmark

Nordic television companies and telecom companies seek to formulate and follow a common strategy leading to the introduction of digital television in the Nordic countries. The overarching goals of this collaboration are threefold: to make the transition from analogue to digital television reception as simple as possible for Nordic viewers, to avoid end eliminate technical hindrances which might block viewers' access to the various programme companies' output, and to make the transitional period with parallel analogue and digital transmissions as short as possible.
More specifically, the cooperation should ensure

• that the nationwide channels of all the Nordic countries be accessible throughout the Nordic region, should the transmitting company so wish;
• that a uniform set of criteria and specifications regarding receiver apparatus be set out for the benefit of manufacturers and providers of service; and
• that viewers be given the greatest possible freedom of choice of channels, services and distribution systems, which is to say the avoidance of a market made up of multiple, closed solutions which curtail viewers' freedom of choice, and affording television companies the possibility of direct contact with audiences, as the companies deem appropriate.

Although the Nordic countries are small markets by international standards taken individually, the Nordic region as a whole is fully comparable with the major European markets. A common or compatible system for digital television in the Nordic countries would be most advantageous with regard to the commercial exploitation of the potential inherent in new digital distribution systems and to the cost-efficiency of actors on the market.

The cooperative organization described herein is open to all major television companies and distributors who subscribe to its stated objectives.

Principal implementations of digital television in the Nordic countries today

Unofficially, two platforms are establishing de facto bridgeheads in the Nordic region, viz.:

• Open-TV/Viaccess/Eurobox
  This platform is being introduced by Telia and Tele Danmark for (initially) the CATV and SMATV markets.
• MediaHighway/Conax
  This platform is being established by Canal Digital Nordic for the DTH, CATV and SMATV markets. In the start-up phase, the system will combine a Nokia operative system and Conax.

These two platforms are scheduled to be introduced on the Nordic market in 1997/98, and in response to them tens of thousands of IRD units will have been put on the market before the proposed coordination can have any effect.
The three operators are of the opinion that since each has made such efforts to develop open systems, the platforms and their respective decoder units, already on their way to market, will in all likelihood be able to accommodate a common Nordic platform.

• European specification work in the context of DigiTag and DVB Terrestrial transmission of digital television is scheduled to commence in Sweden and Finland during 1998. In this connection work toward specification of systems is being undertaken within DigiTag (Digital Terrestrial Television Action Group) and DVB; it is timed to coincide with the commencement of transmissions in the Nordic countries and Great Britain.

Three subsystems are crucial to compatibility with other platforms, viz.:

• the decoder (IRD unit),
• the conditional access system (a.k.a. CA-system),
• and the application interface (API).
  

As for the specifications of the IRD units for the respective platforms, it should be pointed out that both take their point of departure in relevant DVB/MPEG recommendations. Eurobox is a CATV decoder which has the support of the following operators: Deutsche Telecom, France Telecom, Telia, Tele Danmark, Casema and Mediakabel. The Canal Digital platform is supported by Telenor and Canal Digital in the Nordic countries. Even if there are a number of differences between the specifications of the respective IRD units, similarities nonetheless predominate. In addition, it should be noted that the IRDs of both platforms feature a loader capability which makes it possible to change the software in the decoder.

The CA systems and APIs of the two platforms are different and incompatible. It should be noted, however, that both the CA-system and the API are among the software in the IRD which can be exchanged using the loader capability. This is an important prerequisite to compatibility.

As for compatibility between different broadcast technologies, the two above-mentioned platforms for cable and satellite distribution, respectively, were not conceived with a view to accommodating terrestrial distribution. Similarly, an IRD for cable may not be used in connection with DTH reception, and vice versa.

A strategy to achieve a common Nordic specification for digital television The starting point for the elaboraton of a plan toward a common Nordic specificaton for digital television is the situation described above. The proposal as to how present activities can be brought to converge in a common solution has the following five components:

• a description of the objective
• a description of the elements in the distribution system which must be adapted in order to attain the objective
• a description of the present commitments of the concerned parties
• a description of the organization which will bring us to our goal
• a timetable for the work.

These five points are treated individually in the following:

1. Objective
The objective of a common Nordic specification is threefold:

• Viewers shall be able to use the same IRD to receive programmes and other services from all sources that broadcast to the Nordic market.
• this IRD equipment (regardless of kind) will be equipped to accommodate upgrading/adaption to other modes of transmission (e.g., a satellite-TV IRD should be adaptable to receive terrestrial television, CATV and telenet/ADSL-TV - and vice versa).
• The Nordic IRD hardware shall be competitive in terms of price and performance with other IRD units which fill corresponding requirements.

2. Elements in the distribution system
The elements to be adapted in order to obtain convergence in a common solution are:

• IRD hardware
• the CA-system
• API.

(a) IRD hardware
The basic hardware specification shall correspond with established international standards in the area (DVB/MPEG).

The options in the specification should be close to one or more of the major European specifications for open receivers in order to take advantage of economies of scale and thereby achieve the best possible cost/performance ratio.

The followng capabilities have been identified as crucial to the achievement of our overarching objective and represent essential aspects of the work ahead:

• Common Interface, as recommended by DVB (to guarantee freedom of choice regarding CA/API, a longer lifetime for the box, and protection against piracy)
• Transport port (to afford access to multiple distribution modes by means of auxiliary hardware)
• Loader mechanism and Memory expansion option (or other solutions to permit upgrading).

(b) Conditional access systems (CA)
The optimal situation from the consumer's point of view is to have access to all programme packages, regardless of distribution mode, from a single CA system.

Initially, however, there will be at least two different CA systems on the Nordic market, and a solution should be presented which guarantees the user of an IRD unit access to programming, regardless of CA system. Several possible solutions present themselves, e.g., simulcrypt/multiple encryption so that the box accommodates several cards.

The parties to this agreement pledge to strive to create a basis for commercial agreements between operators on the Nordic market to use CA technology which serves this objective. It is important that access to the system be open enough to satisfy competition safeguards and antitrust regulations.

The aim is to have designated the CA system for the Nordic countries by the end of 1998.

(c) API
The optimal situation from the consumer's point of view is for all applications (EPG, PPV services, information services, transaction services, etc.) to be implemented on a single software platform. There appears to be a general move toward a common API, which might become a de facto or an actively agreed international standard for television services, as, for example, HTML is on Internet. Deliberations on this subject are currently under way within DVB. The parties to this agreement pledge to give priority to work toward a common API, and to the development of applications in it.

The aim is to have designated an API for the Nordic countries by the end of 1998.

3. Other obligations
The tele-distributors are prepared to enter negotiations with the television companies and others transmitting terrestrial digital signals regarding cooperation in matters relating to SMS and EPG.
The signatories pledge to use the specifications agreed by the organization in their dealings with suppliers of IRD units.

4. Organization
The work toward a common Nordic standard for digital television is to be organized as follows:

Board of Governors
The Governors are the CEOs of the collaborating organizations. The Board meets twice annually.

Additional meetings at the deputy level may be convened as deemed necessary. The Board of Governors is the highest decision-making body in the organization and sets out the guidelines for its work.

Until otherwise specified, the work of the organization takes its point of departure in the document agreed at the meeting in Odense, 5th November 1997.

The organization shall seek consensus in all decisions, as opposed to 'majority rule'. The Board elects a Chairman who is responsible for the Board's work. The Board reviews the organization's annual report and accounts each year.

An Executive Committee having ten members reports to the Board. Half of the members are nominated by the tele-distributors acting in concert, and half by the television companies, also in concert.

Each member organization pays a once-and-for-all contribution of DKK 100,000. The combined revenue shall cover operating costs and special studies required in the course of the organization's work. In time it may prove necessary to levy an annual fee to strengthen the organization's financial base. In exceptional cases the Board may set lower fees for lesser operators.

Executive Committee
The Executive Committee is responsible for monitoring the progress of the work through continuous updates of agreed specifications for the common Nordic platform for digital television.

The Executive Committee elects a Chairman, who has operative responsibility for the work of the organization. On the mandate of the Board, the Executive Committee guides the planning and work of the organization. Once a year, the Committee submits an annual report, accounts, budget and plan of action to the Board of Governors. The Chairman of the Committee keeps the Governors abreast of the progress of the Committee and subcommittees.

The Executive Committee is empowered to appoint subcommittees to help it in its work. The Executive Committee may also engage personnel to conduct studies, etc., within the bounds of the plan of action and the budgetary framework laid down by the Board of Governors. An important aspect of the cooperation is the development of expertise within the participating organizations, as well.

Even now, subcommittees seem appropriate. A Technical Subcommittee shall monitor and contribute to international work on specifications in this area in fora like DVB, DAVIC and DigiTAG. The Technical Subcommittee shall elaborate Nordic specifications for the IRD box, a common CA system, and a common API. It will also be natural for the Technical Subcommittee to liaise with manufacturers of the IRD units and television receivers.

The second subcommittee which seems advisable to set up at the outset is one which will serve as a creative 'think tank' for the development of applications, identify commercial opportunities, monitor developments in relevant organizations (e.g., negotiating bodies, production companies and consumer/user organizations), keep abreast of developments in commercial law and market regulation, nationally and within the EU, evaluate anti-piracy measures and liaise with institutions which are charged to combat piracy, and generally to contribute ideas and suggestions to the work of the organization.

5. Timetable

5th November 1997 Approval of the statement of objectives and plan for a Nordic digital television platform and creation of an organization, "Nordic Digital TV", toward that end.
15th November 1997 First Meeting of the Executive Committee.

1st December 1997 The Executive Committee appoints subcommittees, adopts the mandate for the work of the Committee, and drafts a plan of action.

1st February 1998 The Executive Committee considers the technical specification for an IRD unit for the 1998/99 season, based on the recommendations of the Technical Subcommittee.

1st April 1998 The Executive Committee reports to the Board of Governors, including progress made toward common CA and API.

1st November 1998 The Executive Committee considers the technical specification for an IRD unit for the 1999/00 season.

15th November 1998 Annual Meeting of the Board of Governors.